Indian Bank’s fresh slippages in the first quarter of the current financial year came from the farm loans, Shantilal Jain, managing director and chief executive officer of the bank said.
“In agriculture, the slippages is mainly coming from the farm loans. Out of the total slippages in this quarter, we have recovered Rs 300 crore,” Jain said during the press conference held in Chennai on July 29.
In April-June quarter, the state-owned lender has reported total fresh slippages of Rs 1,928 crore. Of this, MSME slippages were Rs 909 crore, Agriculture slippage was Rs 597 crore, and retail slippages worth Rs 422 crore.
Agriculture slippages in June quarter has increased 87 percent on-year, and around 18 percent on a sequential basis. In March quarter, slippages from agriculture stood at Rs 508 crore and Rs 319 crore in June quarter last year.
Nonetheless, in the reporting quarter, overall slippage ratio of the bank eased on a yearly basis to 1.50 percent, from 1.57 percent in a year-ago period. However, it was at 1.11 percent in the quarter-ago period.
“As against the slippage of Rs 1,928 crore in Q1FY25, our recovery was Rs 1,937 crore, so we are maintaining the tempo of recovery more than the slippage,” Jain said.
Jain during the conference also said that in the current financial year, the lender aims to recover Rs 400 crore from the assets sale through asset reconstruction company (ARC).
Earlier on July 29, Indian Bank reported a a 40.6 percent on-year rise in net profit at Rs 2,403.42 crore in the first quarter of the current financial year. Sequentially, the profit was up around seven percent.
Gross non-performing asset (NPA) ratio of the bank stood at 3.77 percent against 5.47 percent in the year-ago period and 3.95 percent in the March quarter.
Net NPA ratio eased to 0.39 percent from 0.43 percent in the March quarter and 0.70 percent in the year-ago period.
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